East and Southern Europe), India, parts of South America, Southwest Mexico and Australia. The operating characteristics of STPPs are relatively well matched with the intermediate and peak electricity load requirements in these regions. Two types of collectors have been used in STPPs: parabolic trough and central receiver. Electricity is generated by incorporating the solar collectors with a Rankine cycle power plant or as an add-on to a natural gas combined cycle (referred to as an ISCCS). STPPs in southern California, with a total output of 354 MW, have operated reliably over the past 15 years. New parabolic trough STPPs are estimated to have a capital cost. | Report prepared for The World Bank Washington . COST REDUCTION STUDY FOR SOLAR THERMAL POWER PLANTS FINAL REPORT May 5 1999 Prepared by Enermodal Engineering Limited 650 Riverbend Drive Kitchener ON N2K 3S2 Tel 519-743-8777 Fax 519-743-8778 e-mail office@ in association with Marbek Resource Consultants Ltd. Suite 500 1355 Bank St Ottawa Ontario Cost Reduction Study for Solar Thermal Power Plants Page ii Enermodal Engineering Ltd. Marbek Resource Consultants Ltd. May 1999 Cost Reduction Study for Solar Thermal Power Plants EXECUTIVE SUMMARY Recent concern over the problem of climate change has generated renewed interest in Solar Thermal Power Plants STPP as a means of generating electricity. STPPs although more expensive than conventional fossil-fuel power plants release much less carbon dioxide and other pollutants. There are several applications for World Bank GEF funding for STPPs in developing countries. The purpose of this report is to assess the current and future cost competitiveness of STPPs with conventional power systems to determine the market potential for STPP with particular emphasis on developing countries and to identify an overall strategy for promoting accelerated development of STPP including recommended roles for the key players in particular the GEF . The market for STPP is large and could reach an annual installation rate of 2000 MW. The best regions for STPP are Southern Africa Mediterranean countries including North Africa Middle East and Southern Europe India parts of South America Southwest . northern Mexico and Australia. The operating characteristics of STPPs are relatively well matched with the intermediate and peak electricity load requirements in these regions. Two types of collectors have been used in STPPs parabolic trough and central receiver. Electricity is generated by incorporating the solar collectors with a Rankine cycle power plant or as an add-on to a natural gas combined cycle referred to as an ISCCS . .